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Tuesday, November 10, 2009

Mayor-elect Gatsas reacts to possible bond default

(MANCHESTER) Mayor-elect Ted Gatsas says Manchester taxpayers and budget writers won't be on the hook if the bonds on the Verizon Wireless Arena default. The current State Senator and Alderman, and incoming Mayor reacted to the Josiah Bartlett Center 's report that changes in the state budget could prevent the Manchester Housing and Redevelopment Authority from making its bond payments in 2010.

In 2000, the city funded construction of the Civic Center, since renamed the Verizon Wireless Arena, through non-recourse bonds funded through the city's share of Meals and Rooms Tax Revenues. This year's budget capped those revenues for two years. Last week, Moody's Investor Services downgraded the bonds to "junk bond" status, and warned of a possible default next year. But Gatsas is confident that any problems with the arena won't spill over into the city budget.